Ameriprise Financial Services

Tom Parks Subject to 23 Complaints Over Oil and Gas Investments

June 24, 2017 | by Staff Attorney

Broker Tom Parks (Parks) has been subject to a massive number of customer complaints alleging many millions in damages. Parks was associated with Ameriprise Financial Services, Inc. (Ameriprise) until April 2016. According BrokerCheck the customer complaints largely involve claims of unsuitable investments in oil and gas, variable annuities, and REITs. In particular, many of the complaints mention master limited partnership (MLPs). In total, 23 customers have brought complaints involving Parks’ actions. In addition, Ameriprise terminated Park stating that Parks was permitted to resign while the broker was on heightened supervision for violations of company policy related to suitability, client disclosure, and outgoing correspondence issues. The securities lawyers of Gana Weinstein LLP continue to investigate the customer complaints against Parks.

Our clients tell us similar stories that their advisors hyped MLPs and other oil and gas investments as high yielding investments without significant discussion of risk. In a recent Associated Press article, common stories of how investors are pitched by their financial advisors on oil and gas private placements were reported on. Often times these products are pitched as ways to ride the boom in U.S. oil and gas production and receive steady streams of income.

Brokers that have recommended MLPs to investors may have made unsuitable recommendations based upon the yields of these investments rather than the risk to principal. Over the past year MLPs have been hammered due to weaknesses in oil and gas and commodities markets.

Ameriprise Financial Terminates Stephen Mosley Over Private Securities Transactions

June 14, 2017 | by Staff Attorney

The investment lawyers of Gana Weinstein LLP are investigating Ameriprise Financial Services, Inc.’s (Ameriprise) termination of former broker Stephen Mosley (Mosley) working out of the Lake Havasu City, Arizona office. Ameriprise terminated Mosley in November 2016. According to the broker’s Financial Industry Regulatory Authority (FINRA) BrokerCheck filing the firm stated that Mosley “was terminated for compliance policy violations related to complying with disciplinary action and heightened supervision, soliciting a prohibited security and suitability of a transaction.” Mosley also has two customer complaints listed on his record. No other disclosure concerning the extent and nature of the activity is disclosed.

However, Mosley has disclosed several outside business activities including his d/b/a Wisdom & Wealth Corp. Mosley has also disclosed entities including LP Prop, LLC – a real estate holding company. It is unclear at this time if Mosley’s activities involve any of these disclosed entities.

The providing of loans, selling of promissory notes, or recommending investments outside of the firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”. Often times, brokers sell promissory notes and other investments through side businesses as accountants, lawyers, real estate agents, or insurance agents to clients of those side practices.

Investor Recovery: Mark Sellers and Selden Companies $10 Million Investment Fraud

June 11, 2017 | by Staff Attorney

The investment lawyers of Gana Weinstein LLP are investigating the action brought by the Department of Justice (DOJ) involving property acquired by Mark Sellers (Sellers) as part of a $10 million investment fraud scheme. According to authorities Sellers shot and killed himself on Aug. 2, 2016. The DOJ alleged that Sellers fraud scheme involved stealing approximately $10 million from approximately 100 investors through his firm, Selden Companies, LLC, from December 2007 through at least 2015.

According to the DOJ, Sellers fraudulently misrepresented to investors that he would use the funds to purchase companies and turn them around to sell at a profit. However, Sellers and his wife spent almost all of the invested funds to maintain their own lavish lifestyle. Sellers’ used investor funds for vehicles, life insurance policies, homes, jewelry, and credit card purchases laundering the invested funds through multiple bank accounts.

It has also been alleged that Sellers used former Ameriprise Financial Services, Inc. (Ameriprise) broker John Elliott (Elliott) to raise funds for the fraud. According to records kept by the Financial Industry Regulatory Authority (FINRA) Elliott working out of Overland Park, Kansas location from November 2011 through September 2016. Thereafter, Ameriprise terminated Elliott alleging “compliance policy violations related to selling away.

Mark Wesley Terminated by Ameriprise After Unauthorized Trading in Customer Accounts

November 9, 2016 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Mark Wesley (Wesley) alleging unsuitable investments, negligence, and breach of fiduciary duty among other claims. According to brokercheck records Wesley has been subject to six customer complaints. Some of the complaints involve direct participation products (DPPs), oil and gas private placements, variable annuities, non-traded real estate investment trusts (REITs), and other alternative investments.

In June 2016, Ameriprise Financial Services, Inc. (Ameriprise) permitted Wesley to resign alleging that he was under suspension for compliance policy violations related to unauthorized trading, use of discretion in a non-discretionary account, supervision of staff and responding to supervision.

In addition, Wesley has been subject to five tax liens totaling millions of dollars. A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

Paul Mata Accused of Engaging in a $14 Million Investment Fraud Scheme through Secured Capital Investments

October 24, 2016 | by Staff Attorney

In September 2015, The Securities and Exchange Commission (SEC) announced fraud charges and an asset freeze to halt an ongoing real estate investment scheme being conducted by a trio of business associates in California accused of stealing investors’ money. The SEC alleged in their complaint that the fraud was orchestrated by Paul Ricky Mata (Mata), a former registered investment adviser with an extensive disciplinary history. Even though Mata was terminated from Ameriprise Financial Services, Inc. (Ameriprise) and had other disciplinary suspensions, Mata formed two unregistered advisory firms, Logos Wealth Advisors, Inc. (Wealth Advisors) and Lifetime Enterprises, Inc., dba Logos Lifetime University (Lifetime University). According to the SEC, Mata together with David Kayatta (Kayatta) and Mario Pincheira (Pincheira) defrauded investors.

The complaint alleges that from 2008 through the 2015, defendants raised over $14 million from over 100 investors from California and several other states, by soliciting investments in Secured Capital Investments, LLC (SCI) and Logos Real Estate Holdings, LLC (LREH). Many of the investors were claimed to be retirees who were duped into selling their existing securities holdings and investing in the fraudulent funds using online videos, investment seminars promising “Indestructible Wealth,” and presentations to church groups promising “Finances God’s Way.” Mata, Kayatta, Wealth Advisors, and Lifetime University have been accused of inducing investors by falsely promising guaranteed returns, misrepresenting investment proceeds use, and failing to disclose Mata’s disciplinary history to his advisory clients.

According to Mata’s BrokerCheck records, he has 15 disclosure events including 7 regulatory or civil events and eight customer complaints.

FINRA Investigates Broker Bahram Mirhashemi for Unauthorized Trades and Churning

March 14, 2016 | by Staff Attorney

The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Bahram Mirhashemi (Mirhashemi). According to BrokerCheck records Mirhashemi has been the subject of at least five customer complaints, one regulatory action, one regulatory investigation, two employment separations, four judgments or tax liens, and one financial disclosure. The customer complaints against McMahon allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, negligence, breach of fiduciary duty, and churning (excessive trading) among other claims.

In December 2015, FINRA initiated an investigation that looked into claims of unauthorized trades, unsuitable mutual fund switching, churning of customer accounts, fraud, misleading communications with customers, using unapproved methods of communications, filing false forms with FINRA concerning tax liens, and engaging in unapproved outside business activities. Shortly thereafter, Mirhashemi’s firm terminated him stating the FINRA investigation as the reason for the termination.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

Investors File Non-Traded REIT Complaints Against Broker Nancy Daoud

February 11, 2016 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Nancy Daoud (Daoud). According to BrokerCheck records Daoud is subject to 6 customer complaints. The customer complaints against Daoud allege securities law violations that including unsuitable investments and misrepresentations among other claims. Many of the most recent claims involve allegations concerning non traded real estate investment trusts (Non-Traded REITs) and business development companies (BDCs).

As a background since the mid-2000s Non-Traded REITs became one of Wall Street’s hottest products. However, the failure of Non-Traded REITs to perform as well as their publicly traded counterparts has called into question if Non-Traded REITs should be sold at all and if so should there be a limit on the amount a broker can recommend. See Controversy Over Non-Traded REITs: Should These Products Be Sold to Investors? Part I

Non-Traded REITs are securities that invest in different types of real estate assets such as commercial, residential, or other specialty niche real estate markets such as strip malls, hotels, storage, and other industries. Non-traded REITs are sold only through broker-dealers, are illiquid, have no or limited secondary market and redemption options, and can only be liquidated on terms dictated by the issuer, which may be changed at any time and without prior warning.

Financial Advisor Investigation: Ameriprise Financial Services’ Advisor Detlef Schoeppler

November 29, 2015 | by Staff Attorney

The investment attorneys of Gana Weinstein LLP are interested in speaking with clients of Detlef Schoeppler (Schoeppler). According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) Schoeppler has been the subject of at least 10 customer complaints, one criminal matter, and three judgments or liens. The customer complaints against Schoeppler allege securities law violations that claim unsuitable investments in various investment products including REITs, variable annuities, and mutual funds. The most recent complaint was filed in August 2012, and alleged $77,569 in damages due to claims that the broker recommended a variable annuity purchase in June 2011 that was misrepresented to the customer. In addition, the customer alleged that the fees were not fully disclosed and that there were trades made without the client’s authorization.

In addition, in July 2014, two tax liens were imposed on Schoeppler. One lien is for $184,519 and the other is for $182,691. A broker with large liens are an important consideration for investors to consider when dealing with a financial advisor. An advisor may be conflicted to offer high commission investments to customers in order to satisfy liens and debts that may not be in the client’s best interests.

Schoeppler entered the securities industry in 1996. Since June 1996, Schoeppler has been associated with Ameriprise Financial Services, Inc. out of the firm’s Tampa, Florida branch office location.

Broker Spotlight: Ameriprise Financial Broker Michael Lipscomb

October 12, 2015 | by Staff Attorney

According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Michael Lipscomb (Lipscomb) has been the subject of at least four customer complaints and two criminal matters over the course of his career. Customers have filed complaints against Lipscomb alleging securities law violations including that the broker made unsuitable investments, negligence, unauthorized trading, and excessive trading among other claims.

Lipscomb entered the securities industry in 1992. From March 2007 until August 2014, Lipscomb was associated with Wunderlich Securities, Inc. Lipscomb is currently registered with Ameriprise Financial Services, Inc. out of the firm’s Orlando, Florida office.

All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.

Ameriprise Broker Scott N. Smith Sanctioned Over Falsification of Firm Records

April 2, 2015 | by Staff Attorney

Please note: This article does NOT relate to Scott D. Smith – a current Ameriprise Advisor.

The Financial Industry Regulatory Authority (FINRA) sanctioned broker Scott Smith (Smith) concerning allegations that between October 2009 and January 2013, Smith mismarked as unsolicited order tickets for thousands of trades that were actually solicited by the broker. By doing so, FINRA found that Smith caused Ameriprise Financial Services, Inc.’s (Ameriprise) books and records to be inaccurate.

Smith entered the securities industry in 1982. Since 2005, Smith has be associated with Ameriprise until his registration was terminated in February 2013. FINRA alleged that from October 2009 through January 2013, Smith executed 8,169 trades. According to FINRA, Smith marked the order tickets for 6,207 of those trades, or 76%, as being unsolicited. An unsolicited trade means that the broker did not make a recommendation to the client to purchase the particular security. By marking a trade as unsolicited, the broker typically is claiming that the investment opportunity was not brought to the client’s attention by the broker and instead the client instructed the broker to execute the trade on his or her behalf.